Flat Rate Agreement Template for Indonesia

The Flat Rate Agreement is designed for use in the Indonesian market where parties wish to establish a clear, fixed-price arrangement for service delivery. This document type is particularly valuable when services can be well-defined upfront and both parties prefer cost certainty. It incorporates essential elements required under Indonesian law, including the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant commercial regulations. The agreement is commonly used for professional services, consulting engagements, project-based work, and ongoing service arrangements where a predetermined fee structure is preferred over time-based billing. It includes comprehensive provisions for service definition, quality standards, acceptance procedures, and payment terms, while addressing specific Indonesian legal requirements for contract formation and enforcement.

1. Parties: Identification and details of the service provider and client

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided under the flat rate arrangement

5. Payment Terms: Flat rate amount, payment schedule, and payment methods

6. Term and Termination: Duration of the agreement and conditions for termination

7. Service Provider Obligations: Key responsibilities and commitments of the service provider

8. Client Obligations: Key responsibilities and commitments of the client

9. Acceptance Criteria: Standards and procedures for accepting delivered services

10. Intellectual Property Rights: Ownership and rights to any work product or IP created

11. Confidentiality: Protection of confidential information exchanged during the service provision

12. Limitation of Liability: Caps on liability and exclusions of certain types of damages

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

14. Governing Law: Specification of Indonesian law as governing law

15. Dispute Resolution: Process for resolving disputes under Indonesian jurisdiction

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment